University of Tennessee's $2.37 billion budget includes no tuition hike but increased fees

Yahoo

05-05-2025

The University of Tennessee at Knoxville has proposed a new budget that won't increase tuition, but students could see increases to mandatory fees for the fall 2025 semester if the budget is approved.
UT's proposed budget is an estimated $2.37 billion, an increase of more than $200 million compared to last year. The increase aligns with growth on campus, along with a rapidly growing interest in UT among prospective students, who submitted more than 63,000 applications for the upcoming fall semester.
"Our team is sorting through it right now, but I can tell you this: It's going to be historic in terms of both numbers and the academic profile of the students that are going to be with us in the fall," Chancellor Donde Plowman told her Advisory Board on May 2.
Tuition would remain stagnant after last year's 2% hike for in-state students and 4% hike for out-of-state students, the first increases since 2020. Plowman instead has proposed increases to several mandatory fees, which students pay for the fall and spring semesters:
The facilities fee would increase $30 for in-state students and $46 for out-of-state students, totaling $630 and $946, respectively. This fee helps pay for building maintenance and construction projects.
The transportation fee would increase by $24 to $258 total. This fee goes toward UT buses and their routes on campus.
The library fee would increase by $10 to $90 total. This fee helps pay for databases, the library collections and activities.
Dining service rates would increase by a flat rate of 3.6%, except for the Flex Plan. The increase would be by $21-$90 depending on which plan students pick. The increase would offset inflation costs for food, maintenance and salaries. UT also has proposed discontinuing the $24 per day unlimited meal access fee.
Housing rates would increase 5% for every option. The increase would be by $152-$295 depending on which type of room students choose. The increase would help pay for rising costs, debt and maintenance projects.
In-state students could expect to pay $30,394 for the full academic year, including tuition, fees, housing and food. Out-of-state students could expect to pay $50,170.
The Chancellor's Advisory Board approved the proposed budget May 2. It will be presented to the UT System Board of Trustees for approval during its annual meeting June 30-July 1.
Students now can pay a $299 flat fee that covers all course materials for all classes, both online and physical copies. Mini and summer term subscriptions cost less, and students have the option to opt out of the "Total Access" program to purchase individual textbooks.
The FUTURE program, which helps students with intellectual and developmental disabilities transition from high school to adult life, would have a $4,500 increase. A $3,600 increase is proposed for the PASS program, a support service for UT students diagnosed on the autism spectrum. However, these changes align with the reimbursement rate for the state's Vocational Rehabilitation Program, so the increases shouldn't come with a cost for students.
Three colleges would have unspecified increases to cover supplies, materials, equipment and field trips: the College of Arts and Sciences, the College of Communication and Information and the College of Education, Health and Human Sciences
Six professional degree programs would receive increases as well:
CRNA Program for anesthetist nurses
Strategic Leadership Executive Master of Business Administration
Professional Master of Business Administration
Master of Arts in Economics
Master of Science in Marketing
Master of Science in Supply Chain Management Global
Study abroad programs would have a new flat fee of $350 to compete with other SEC schools and fund trip budgets.
Parking permits for faculty and staff members would increase by 5%, with rates determined by their salary scale.
UT also has proposed ending the confirmation deposit for fully online students by the spring 2026 semester to eliminate barriers for students as UT moves full steam ahead with its Arizona State University partnership.
UT projects an estimated revenue of nearly $12.7 million through these changes, with revenue going toward student services, building maintenance, food services, parking (including a new garage) and replacing or improving student housing.
Educational and general revenues make up the majority of the proposed $2.37 billion budget, with tuition, fees and state funding providing most of the revenue stream.
The revenues cover professor salaries, scholarships and research, as well as UT's auxiliary functions like sports and bookstores, which in turn provide revenue. UT's revenues are exceeding the university's expenses, according to agenda documents.
Based on internal surveys, confidence in UT has grown over the past two years, and it bodes well for UT's competitiveness as it nears the national enrollment cliff, a period in which the 18-year-old population will decline. Tennessee is projected to see a rise in high school graduates against the national decline, according to data from Western Interstate Commission for Higher Education.
That could make UT a more desirable university in the state, as well as nationally, while driving other universities to become more aggressive recruiters. UT leaders have emphasized the affordability of in-state tuition and the competitiveness of the out-of-state tuition, all while building new facilities, improving athletics and launching new programs. The success of UT's competitiveness is tangible in the growing number of applications.
"That is remarkable," board member Tom Smith said. "To be able to do that and maintain that (affordability, value and competition) is really something we should be proud of."
Keenan Thomas reports for the Knox News business growth and development team. You can reach him by email at [e-mail].
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This article originally appeared on Knoxville News Sentinel: University of Tennessee budget would keep same tuition, increase fees